Options Corner: ANET

Core Viewpoint - Arista Networks has reached a new all-time high following the release of full-year guidance, projecting $10.5 billion in revenue, which represents a 20% year-over-year growth [1] Company Performance - Arista Networks has significantly outperformed both the broader market and its tech sector competitors over the past year, with notable competitors including Hewlett Packard, Cisco, Dell, and Fortinet [3] - Over the past five years, Arista Networks has shown exceptional performance compared to its peers in the data center and AI infrastructure sectors [3] Technical Analysis - The stock has notable support around the $138 to $140 range, with significant highs and lows observed historically in this area [4] - The volume profile indicates a strong volume node near the $138 to $140 range, suggesting robust support [5] Options Strategy - A cautious approach is recommended due to the stock being overbought on the RSI, despite its recent rally to all-time highs [6] - A neutral to bullish options strategy has been suggested, involving selling an out-of-the-money put vertical, specifically selling the $148 put and buying the $140 put [7][8] - The potential credit collected from this strategy is approximately $220, with a risk of about $580, allowing for a break-even point nearly 4% below the expected opening price [9]